Daily Archives: April 19, 2013

Harlequin Investors must not walk away with a false sense of security

Gareth Fatchett of Regulatory Legal Solicitors

Gareth Fatchett of Regulatory Legal Solicitors

Risk Warning, a voice for distressed investors in the UK, cautiously welcomes Harlequin Property’s meetings with investors and IFAs, scheduled for next week in both Manchester and Basildon. It hopes that investors who have, thus far, met with stony silence from Harlequin will get the answers they have been seeking at these meetings.

Set up by Regulatory Legal Solicitors, Risk Warning recently met with investors throughout the country to help them advance their case with Harlequin.  The response at these meetings was overwhelmingly in favour of opening up a constructive dialogue with Harlequin. Gareth Fatchett from Risk Warning says, “The lack of information from Harlequin has been disconcerting for many of the investors we have been speaking to this month. It is important that Harlequin engages with its investors, many of whom are very concerned about the safety of their property investments in the Caribbean.”

While acknowledging that Harlequin’s efforts to have a dialogue with its investors signals a necessary step in the right direction, Risk Warning urges that investors must arm themselves with the right questions to ensure that they get a full picture of the current status. Mr Fatchett continues, “Given the amount of money invested and the state of uncertainty over a long period of time coupled with some of the recent news coverage on Harlequin, there are many detailed questions to which investors should be demanding answers. It is important that investors do not leave these meetings with a false sense of security.”

Risk Warning, which is acting for a number of Harlequin investors, has compiled a comprehensive list of over 30 questions for Harlequin, which it is seeking to raise with Harlequin next week. These questions demand answers on a number of critical issues such as:

  • how much of investors’ money has been spent on Caribbean resorts being developed by Harlequin
  • what has actually been built but is not yet completed
  • what the cost to finish each development will be
  • what the value of finance payments in arrears is
  • when the Caribbean accounts will be brought up to date

“Hundreds of investors believed in Harlequin’s marketing and invested millions of pounds in Harlequin properties but now find themselves in the calamitous position of not knowing the outcome of their investments.

We call on Harlequin to listen to its investors carefully and to tell them the plain truth about where they stand regarding the current status of their investments and, equally importantly, what the future holds. Anything short of a honest discussion will be unacceptable. We sincerely hope that investors will have productive discussions with Harlequin.”

Gareth Fatchett, Risk Warning

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